Arizona Corp. had the following account balances at 12/1/19: Receivables: $96,000; Inventory: $240,000; Land: $720,000;...

  

 

 

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Arizona Corp. had the following account balances at 12/1/19: • Receivables: $96,000; Inventory: $240,000; Land: $720,000; Building: $600,000; Liabilities: $480,000; Common stock: $120,000; Additional paid-in capital: $120,000; Retained earnings, 12/1/19: $840,000; Revenues: $360,000; and Expenses: $264,000. Several of Arizona's accounts have fair values that differ from book value. The fair values are: • Land - $480,000; Building - $720,000; - Inventory $336,000; and Liabilities - $396,000. Inglewood Inc. acquired all of the outstanding common shares of Arizona by issuing 20,000 shares of common stock having a $6 par value, but a $66 fair value. Stock issuance costs amounted to $12,000. Imagine you are the decision maker at Inglewood Inc. Prepare a fair value allocation and goodwill schedule at the date of the acquisition. Determine in 525- words whether you would encourage acquiring Arizona Corp? Be sure to include your rationale. Submit your assignment. te the wing template to complete your week tallation You name bere below Агігова Согр Inglewood Fair Value Allocation Schedule December 1, 2019 Payment by Inglewood (566 fair value x 20,000 sh) Book value of Arizona Corp. (assets liabilities)* Excess of fair value over book value Allocation to specific accounts between fair value and book value DO NOT MODIFY THE FORMAT OF THIS SPREADSHEET + T pete with your answe Inventory (undervalued) Land (overvalued) Building (undervalued) Liabilities Goodwill " 2 T Arizona Corp. had the following account balances at 12/1/19: • Receivables: $96,000; Inventory: $240,000; Land: $720,000; Building: $600,000; Liabilities: $480,000; Common stock: $120,000; Additional paid-in capital: $120,000; Retained earnings, 12/1/19: $840,000; Revenues: $360,000; and Expenses: $264,000. Several of Arizona's accounts have fair values that differ from book value. The fair values are: • Land - $480,000; Building - $720,000; - Inventory $336,000; and Liabilities - $396,000. Inglewood Inc. acquired all of the outstanding common shares of Arizona by issuing 20,000 shares of common stock having a $6 par value, but a $66 fair value. Stock issuance costs amounted to $12,000. Imagine you are the decision maker at Inglewood Inc. Prepare a fair value allocation and goodwill schedule at the date of the acquisition. Determine in 525- words whether you would encourage acquiring Arizona Corp? Be sure to include your rationale. Submit your assignment. te the wing template to complete your week tallation You name bere below Агігова Согр Inglewood Fair Value Allocation Schedule December 1, 2019 Payment by Inglewood (566 fair value x 20,000 sh) Book value of Arizona Corp. (assets liabilities)* Excess of fair value over book value Allocation to specific accounts between fair value and book value DO NOT MODIFY THE FORMAT OF THIS SPREADSHEET + T pete with your answe Inventory (undervalued) Land (overvalued) Building (undervalued) Liabilities Goodwill " 2 T Arizona Corp. had the following account balances at 12/1/19: • Receivables: $96,000; Inventory: $240,000; Land: $720,000; Building: $600,000; Liabilities: $480,000; Common stock: $120,000; Additional paid-in capital: $120,000; Retained earnings, 12/1/19: $840,000; Revenues: $360,000; and Expenses: $264,000. Several of Arizona's accounts have fair values that differ from book value. The fair values are: • Land - $480,000; Building - $720,000; - Inventory $336,000; and Liabilities - $396,000. Inglewood Inc. acquired all of the outstanding common shares of Arizona by issuing 20,000 shares of common stock having a $6 par value, but a $66 fair value. Stock issuance costs amounted to $12,000. Imagine you are the decision maker at Inglewood Inc. Prepare a fair value allocation and goodwill schedule at the date of the acquisition. Determine in 525- words whether you would encourage acquiring Arizona Corp? Be sure to include your rationale. Submit your assignment. te the wing template to complete your week tallation You name bere below Агігова Согр Inglewood Fair Value Allocation Schedule December 1, 2019 Payment by Inglewood (566 fair value x 20,000 sh) Book value of Arizona Corp. (assets liabilities)* Excess of fair value over book value Allocation to specific accounts between fair value and book value DO NOT MODIFY THE FORMAT OF THIS SPREADSHEET + T pete with your answe Inventory (undervalued) Land (overvalued) Building (undervalued) Liabilities Goodwill " 2 T Arizona Corp. had the following account balances at 12/1/19: • Receivables: $96,000; Inventory: $240,000; Land: $720,000; Building: $600,000; Liabilities: $480,000; Common stock: $120,000; Additional paid-in capital: $120,000; Retained earnings, 12/1/19: $840,000; Revenues: $360,000; and Expenses: $264,000. Several of Arizona's accounts have fair values that differ from book value. The fair values are: • Land - $480,000; Building - $720,000; - Inventory $336,000; and Liabilities - $396,000. Inglewood Inc. acquired all of the outstanding common shares of Arizona by issuing 20,000 shares of common stock having a $6 par value, but a $66 fair value. Stock issuance costs amounted to $12,000. Imagine you are the decision maker at Inglewood Inc. Prepare a fair value allocation and goodwill schedule at the date of the acquisition. Determine in 525- words whether you would encourage acquiring Arizona Corp? Be sure to include your rationale. Submit your assignment. te the wing template to complete your week tallation You name bere below Агігова Согр Inglewood Fair Value Allocation Schedule December 1, 2019 Payment by Inglewood (566 fair value x 20,000 sh) Book value of Arizona Corp. (assets liabilities)* Excess of fair value over book value Allocation to specific accounts between fair value and book value DO NOT MODIFY THE FORMAT OF THIS SPREADSHEET + T pete with your answe Inventory (undervalued) Land (overvalued) Building (undervalued) Liabilities Goodwill " 2 T

Answer rating: 100% (QA)

To prepare a fair value allocation and goodwill schedule follow these steps Step 1 Calculation of Payment by Inglewood Inc Inglewood Inc issued 20000 shares at a fair value of 66 per share Payment by ... View the full answer